CDD's aren't all their cracked up to be...

Implications: For years developers were utilizing this public finance tool as a way to drive up their bottom line while passing on the infrastructure cost to the end homeowner. This is a thing of the past.

Analysis: For the next 5 years you will begin seeing signs on every community advertising the fact that the have "no cdd fees". The public will, and they already have, understand the fact that just because you are getting a nice amenity, or paying a few dollars less for your home doesn't mean that a CDD is a good thing. In this next era where the shift will be from bigger is better to price is everything the individual homebuyer will be more discerning when looking at a community with a CDD. My advise to the land speculator is to stay away from Communities with a CDD. The only potential way to get these debt ridden communities at a price that makes sense to be able to deliver homes at a reasonable value is to purchase the bonds (the senior position) and foreclose when the debt service payments aren't being made. This, however, is not quite as easy as it may sound because statutorily you cannot foreclose until years after the default has already been called.

My advice is to be wary of CDD communities and focus on the less "hairy" deals.